Episode 516: Why Paying $192 For A 5-Mile Car Ride May Be Rational

Here's the scenario: A man and his wife are desperate to get to the hospital because she is about to deliver a baby. It's a hot summer day. It's rush hour. They flag down a private car and ask, "How much?" To their surprise the driver wants to charge them four times the normal price of a cab.

So, is this a story about a cabbie taking advantage of a vulnerable couple or is it simply good economics?

Today, we are talking about a company that charges people in desperate situations more for a ride, and we'll consider the argument that it might actually be better for everyone.

Imagine you could call up a friend and say, "Meet me at the bar and tell me what's going on with the economy." Now imagine that's actually a fun evening. That's what we're going for at Planet Money. Want to know more? Check out our "about" page. Want to connect with the Planet Money team? Send us an email.